SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : ATI Technologies in 1997 (T.ATY)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Graham Hickey who wrote (3831)7/29/1999 7:46:00 PM
From: SBHX  Read Replies (2) of 5927
 
Thread,

I doubt if this is a price war. This is ATY showing it's
manufacturing arm and ability to control cost. It also reflects the
reality of the add in card market.

Based on current drop in memory prices (has anyone checked DIMM prices
lately?), the costs could be very low : the SDRAM is the same chips as
that used for DIMMs I'm guessing they are < 50c/MB in huge quantities.

But, other than people who are very tighly connected with purchasing
of raw materials to make boards like these, few people actually know
the actual costs. But I'll try to make guesses.

Assuming the package, box, manuals and cdrom are about $4.00, Here's a
table of possible cost compared to asic costs:

ASIC | Total
$5 | 25.00
$10 | 30.00
$11 | 31.00
$12 | 32.00
$15 | 35.00
---

I doubt if these graphics chips cost anywhere near $15 unless there is
serious yield problems.

Whichever you look at it, I doubt margins are as thin as you think.
And, compared to sound cards, the graphics cards are still very
expensive.

Price Wars hurt all the company involved!! The margins become less.
(historically ATY has had great margins), If ATY doesn't sell a hell
of lot more, they will make less money.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News